Talisman Energy

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Talisman Energys Global Mobility Transformation
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Talismans Global Mobility Transformation

• Background
• Approach Objectives
• Progress to date
• Challenges
• Always Moving Forward

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Background
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Talismans Global Mobility Population - 2009

• As of January 1, 2009 Talisman had 156 Long Term
  expat deployments in 9 countries

3048 Employees Globally
Canada 121 Outbound expats 18 Inbound expats
Norway 2 Outbound expats 16 Inbound expats
United Kingdom 34 Outbound expats 21 Inbound
expats
USA 0 Outbound expat 14 Inbound expats
Algeria 0 Outbound expats 1 Inbound expat
Vietnam 4 Outbound expats 19 Inbound expats
Malaysia 9 Outbound expats 45 Inbound expats
Peru 0 Outbound expat 5 Inbound expats
Indonesia 0 Outbound expat 13 Inbound expats
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Talismans Global Mobility Population - 2011

• January 1, 2009 - 156 Long Term expat deployments
  in 9 countries
• June 1, 2011 - 204 Long Term expat deployments in
  12 countries

Canada 145 Outbound expats 26 Inbound expats
Norway 6 Outbound expats 9 Inbound expats
Poland 0 Outbound expats 3 Inbound expats
United Kingdom 43 Outbound expats 8 Inbound expats
USA 1 Outbound expat 48 Inbound expats
Algeria 0 Outbound expats 1 Inbound expat
Vietnam 2 Outbound expats 22 Inbound expats
Colombia 0 Outbound expats 7 Inbound expats
Malaysia 5 Outbound expats 42 Inbound expats
Australia 0 Outbound expats 9 Inbound expats
Peru 1 Outbound expat 6 Inbound expats
Indonesia 1 Outbound expat 23 Inbound expats
3235 Employees Globally
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Talismans Global Mobility Population - 2013

• January 1, 2009 - 156 Long Term expat deployments
  in 9 countries
• June 1, 2011 - 204 Long Term expat deployments in
  12 countries
• February 28, 2013 - 245 Long Term expat
  deployments in 16 countries

Canada 168 Outbound expats 30 Inbound expats
Norway 4 Outbound expats 4 Inbound expats
Poland 0 Outbound expats 3 Inbound expats
Luxembourg 0 Outbound expats 3 Inbound expats
United Kingdom 52 Outbound expats 9 Inbound expats
USA 2 Outbound expat 73 Inbound expats
Algeria 0 Outbound expats 1 Inbound expat
Vietnam 4 Outbound expats 22 Inbound expats
Colombia 3 Outbound expats 8 Inbound expats
PNG 2 Outbound expats 0 Inbound expats
Malaysia 7 Outbound expats 57 Inbound expats
Sierra Leone 0 Outbound expats 1 Inbound expat
Australia 0 Outbound expats 15 Inbound expats
Peru 1 Outbound expat 3 Inbound expats
Singapore 0 Outbound expats 6 Inbound expats
Indonesia 2 Outbound expat 10 Inbound expats
3944 Employees Globally
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Talismans Home / Host Assignment Combinations
Home Location
Host Location
Aberdeen Algeria Brisbane Bogota Calgary Erbil F
reetown (SL) Ho Chi Minh City Horseheads Houston J
akarta Kuala Lumpur Lima Luxembourg PNG
Pittsburgh Singapore Stavanger Sydney Warsaw
Aberdeen Bogota Brisbane Calgary Ho Chi Minh
City Houston Jakarta Kuala Lumpur Lima Pittsburgh
PNG Stavanger
47 Different Home/Host Combinations and 274
Assignees as of February, 2013
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Corporate Structure
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Why did Talisman undertake a transformation of
Global Mobility?

• Between 2009 and 2013, Talisman entered into 7
  new locations, nearly doubled the number of
  employees on international assignments, and
  encountered a number of new home-host country
  combinations for assignments
• At the same time, initiating a new assignment was
  more challenging due to the increased number of
  policies and exceptions as new policies were
  created for many of the new countries we entered
• A complex legal structure and corporate veil
  issues (secondments, LOAs, no standard approach,
  etc.)
• Talisman business and HR leaders reported
  difficulties identifying and mobilizing
  candidates for international assignments and
  retaining them while on assignment
• An internal audit conducted on Global Mobility in
  Q4 2010 identified inadequate processes and
  controls and an annual spend that was feeling
  like it was out of control
• Assignees complained that the relocation
  experience was confusing and that there were too
  many contacts
• Some elements of Talismans long term expatriate
  policy were above market practice when compared
  to oil and gas peers

In 2011 Global Mobility was identified as a key
strategic priority for Talisman
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Approach Objectives
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Phase 1 Assess
Phase 1 Assess Program, Redesign Develop
Implementation Plan
Phase 2 Construct Future
State Program
Phase 3 Implement Future
State Program
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Phase 1 Current State Assessment
Key business requirements and design priorities
emerged from the program assessment and were used
to drive the redesign process. Interviews and
workshops were conducted with HR stakeholders
representing HR leadership (including the senior
HR business partners from each business), the
Global Mobility team and other process partner
specialists. Additional interviews were
conducted with functional stakeholders, external
vendors and business representatives.
Service Delivery Design Considerations Service Delivery Design Considerations
Process Require clear, streamlined processes for assignee initiation, new country entry and exception management
People Clearly define and communicate responsibilities of Global Mobility COE, HRBPs, functional business leaders and assignees
Vendor Establish clear service level agreements with external service providers and clearly articulate exception management processes
Policies Redesign the suite of policies to meet differing business and assignment type needs, while minimizing the number of policies
Technology Review technology solutions, integrate where possible and seek out opportunities to leverage vendor technologies
Governance Develop and implement a clear governance structure which outlines grants of authority for assignment approval, policy management and exception management
Business Requirements Business Requirements Business Requirements Business Requirements
Requirement Business Priority Current Effectiveness Change Impact
Business Partnering
Employee Experience
Speed
Consistency
Controls
Scalability Adaptability
Operational Cost
x

x

x

x

x

x

x

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Phase 1 Outcome of Current State Assessment

• Objectives were defined
• To enable fast, effective global deployment to
  support Talismans business objectives, our
  mobility program must
• Be adaptable to business needs and different
  talent markets
• Provide a positive employee experience regardless
  of the home and host countries involved
• Enable business managers and employees to focus
  their effort and attention on their core business
  rather than being distracted by logistics
• Be cost efficient and competitive with our oil
  and gas peers

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Phase 2 Design
Phase 1 Assess Program, Redesign Develop
Implementation Plan
Phase 2 Construct Future
State Program
Phase 3 Implement Future
State Program
Phase 1 Assess Program, Redesign Develop
Implementation Plan
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Phase 2 Our comprehensive assessment led to
eight key recommendations focusing on two core
areas
Implications of not implementing
Benefits of implementing
Key changes
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• Policy changes
• Consolidated policies from 19 current policies
  and practices down to 5 (Long term, Short term,
  Domestic/International Transfer, Commuter,
  Rotator)

• The policy changes will create more global
  consistency and equity for all assignees
• We firmly believe that these changes are fair to
  our people, competitive with our peers in the oil
  and gas market, and the right thing to do to
  progress Global Mobility to meet our current and
  future business needs
• Alignment of policy provisions to their true
  intent (e.g. tax as an equalize rather than
  incentive)
• Ability to comply to applicable laws and
  regulations

• Inconsistency across regions creates inequity
  among assignees
• Continued above market provisions
• Lack of alignment to Oil Gas peers practices
• Difficulty mobilizing employees across locations
• Expected savings not achieved
• Approx. 4M per year, once all assignees
  transitioned

• Proposed program changes will help enhance our
  assignees mobility experience by improving the
  processes and support provided throughout their
  assignments
• Close linkage between assignment planning and
  career development
• Improved speed of deployment
• Effective technology platform for assignment
  planning, tracking and providing cost
  implications of mobility decisions

• Program administration
• New global mobility support team and processes
• New service delivery model
• Relocation services vendor

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Recommendations must support our overarching
strategy of putting the right people in the right
place...however, it is imperative that the
implementation strategy minimizes risk
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Phase 2 Global Mobility Service Delivery Model
Global Mobility Service Delivery Model
Implemented in 2012
Business Leader
HR BP
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2
3
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Global Mobility Center of Expertise (CoE)
Regional Global Mobility Specialists
Global Mobility Services Reps
Relocation Services Vendors
Key Responsibilities
Policy, Governance, Controls, Reporting
Assignment Planning, Advisory, Policy
Administration
Policy Administration, Day-to-day support
Delivery of relocation services

• The CoE focuses on governance and program
  improvement to improve policy and process
  controls the centralized CoE also helps to
  achieve consistency
• Dedicated Regional Global Mobility Specialist
  roles partner with the Business to better plan
  and expedite deployments
• Mobility Services roles support a positive
  Employee Experience
• A global Relocation Services Provider will
  improve process controls as well as effectiveness
  and efficiency

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2
3
4
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Phase 2 Our new policy framework simplifies
mobility options globally
Talismans current 19 mobility policies and
program highlights have been streamlined and
realigned into a suite of 5 new Global Policies
19 Policies

• Expatriate Policy
• Cross-border Assignment Policy (Pittsburgh /
  Horseheads only)
• North American Expatriate Policy (all other
  locations )
• Expatriate Transfers to Australia

• Short Term International Assignment

• New Hire Global Transfer Policy (Tier 2 - Below
  M2)
• Employee Relocations
• New Hire Global Transfer Policy (Tier 1 - M2 and
  above)
• Local Plus Transfers to Australia
• New Hire Global Transfer Policy - Australia (Tier
  1 - M2 and above)
• New Hire Global Transfer Policy - Australia (Tier
  2 - Below M2)

• Domestic New Hire Transfer Policy (Tier 1)
• Domestic New Hire Transfer Policy (Tier 2)
• Relocation Program - New Grads
• Group Move Transfer Policy
• Domestic Transfer Policy - Australia
• Temporary Student Transfer Policy

• Commuting Assignment

• Rotational Terms Conditions

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Phase 2 The new policies are aligned with
consistent global principles
These principles were developed to guide policy
development and ensure that they meet the needs
of our business
Guiding Principle
Alignment Long Term assignees will be financially aligned to home country, with a reasonable incentive for being on assignment
Clarity Provisions are clear, simple to explain and easy for assignees to utilize
Adaptability Provisions will be adaptable to local conditions and business needs
Market Competitive Terms Conditions will be competitive with our peers in the market
Consistency Assignees will be treated consistently and equitably across all regions
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Phase 2 Our new framework provides transparency
by aligning policy provisions with their true
intent
Provision Category Description Decision Owner Adaptability
Core Compensation Benefits Provisions including base remuneration and benefits Total Rewards and Business Established by Total Rewards and decided by the business
Equalizers Provisions designed to ensure employees are no better and no worse off than if they had not taken an assignment Global Mobility CoE Not Flexible Components are set by Global Mobility COE based on industry methodology and vary by location
Enablers Provisions to help the employee relocate and focus on their role Business and Global Mobility Specialist Flexible Dial Up / Dial Down options available and determined by the Business with the Global Mobility Regional Specialist and HRBP Situational Provided as needed for the assignees specific circumstances
Incentives Provisions to incent employees to take an international assignment Global Mobility CoE Not Flexible Components are set by Global Mobility COE based on industry methodology and vary by location Situational Provided as needed for the assignees specific circumstances
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Phase 2 Common Transition Approaches
Grandfather Current assignees continue to receive reimbursements and allowances as per the legacy policy terms and conditions for the duration of their current assignment. Assignment extensions would follow the new terms and conditions Pros Employee friendly for those who will be negatively impacted by new terms conditions Assignee support (e.g. allowances net compensation) remains the same until the current assignment concludes Cons Inconsistencies will be created between old and new policy expatriates High level of administration for ongoing payroll/support services
Phase-Out Allows current international assignees to maintain current allowances and support for a defined period of time. Support then decreases over time with a full transition to the new policy after the transition period expires. Pros Employee friendly for those who will be negatively impacted by new terms conditions Any reduction in assignee support is reduced over time to avoid an immediate disruption to assignee experience and quality of living Cons Inconsistencies will be created between old and new policy expatriates High level of administration for a longer period of time during the phase-out schedule or transition period
Buy Out Provides for a one-time lump sum payout to current assignees equal to the difference between the legacy and new terms and conditions for any provisions which negatively impact the assignment package Pros Employee friendly for those who will be negatively impacted by new policy Employee is kept neutral through receipt of a lump sum payment to offset reduction in allowances for the remaining assignment term Not applicable to positively impacted expatriates Cons Moderate levels of administration during short period of time Increases Company costs in the year of transition to the new terms and conditions Increased administrative cost to explain and illustrate that assignees will be equally compensated for reduced assignment support
Immediate Transition All existing assignees would transition to the new policy terms and conditions on a specific date with no reimbursement provided to assignees adversely affected by the new terms and conditions Pros Maintains consistency with new expatriates Moderate level of administration during initial transition period More efficient implementation of technology and vendor processes Cons May positively or negatively impact current assignees High risk of attrition of current assignees due to reduction in net compensation Strong probability that this approach may not be legal in some jurisdictions
Administration Costs
Employee Satisfaction
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Phase 3 Implementation
Phase 1 Assess Program, Redesign Develop
Implementation Plan
Phase 2 Construct Future
State Program
Phase 3 Implement Future
State Program
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Phase 3 A Robust Change and Communication Plan
was Key
Engage July-Sept
Go Live Period Sep-Mar
Persist Post Go Live
Prepare May- June

• One-to-ones prior to OpCom meeting
• Key messages and QAs

• One-to-ones with focus on regional impacts and
  ways to address
• Participate in select country-level meetings

• One-to-ones with focus on regional roll out
  progress
• Executive-level handbook
• Key messages and QAs

• One-to-ones with focus on regional issues

EVPs

• One-to-ones to prepare for go live
• Key messages and QAs
• Preparedness communications/ calls for Go Live

• One-to-ones during Global Mobility roadshow
  visits
• Executive-level handbook
• Key messages and QAs

• One-to-ones with focus on country specific issues

• One-to-ones with focus on country specific
  impacts
• Key messages and QAs

Business Unit Leaders

• Communication or FAQ to address concerns

• One-to-ones with GM team to review impact
  statement
• Road shows with EVP participation

• Feedback touch point via Regional Specialists

• Communication or FAQ to address concerns

Current Expats

• General communication and information on changes

• Potential lunch and learns in uniquely affected
  regions

All Talisman Employees
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Phase 3 Post Project Evaluation Lessons Learned

• Once the project was complete we conducted a
  lessons learned review with representatives of
  key project stakeholders.
• Summary of findings from this exercise include
• Dedicated project manager is required due to the
  scope and size of the effort
• Defining policy principles upfront helps guide
  the design and communication
• Define communicate the key business drivers
• Communicate early often - transparency in
  communication is key
• Have GM SMEs involved in the change management
  and communication
• Complete a current state assessment of policy and
  practice early to adequately prepare for
  implementation
• Identify system/tool impacts early to allow for
  adequate time for updating and operationalizing
• Leverage global resources
• Maintain alignment with the business (allow for
  flexibility)

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Progress to Date
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Global Mobility Mandate
Talisman recognizes that the effective use of
international assignments serves to support both
employee development and the organizations
ability to excel within the global
marketplace. The Global Mobility team is
accountable for ensuring Global Mobility policies
and programs are aligned with Talisman's needs
and administered consistently throughout the
organization, and provides full lifecycle support
for Talisman employees on assignment, transferees
or new hires
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Global Mobility Program Objectives
Talismans Global Mobility function is
responsible for
Global Mobility Policy

• Policy design based on industry benchmarking and
  regional input
• Policy advisor to Business Leaders, HRBPs and
  employees

Governance and Compliance

• Cost controls for relocation costs
• Tax compliance in both the Home and Host
  locations
• Visa Immigration compliance
• Consistent policy application globally

Efficient Effective Service Delivery

• Speed of deployment of mobile employees across
  regions
• Service delivery that meets regional needs
• Variable cost model (scalable)
• Consistent processes, tools and templates

Consistent Equitable Employee Experience

• Consistent service levels
• Consistent equitable treatment of employees
  across regions
• Clear contacts accountabilities

Data and Metrics

• Capture, monitor and report on data globally
• Global metrics and survey capabilities

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Policy progress to date
Four policies have been fully implemented.
5 Global Policies
Implementation Date
19 Policies

• Expatriate Policy
• Cross-border Assignment Policy (Pittsburgh /
  Horseheads only)
• North American Expatriate Policy (all other
  locations )
• Expatriate Transfers to Australia

Long Term (1-4 yrs)
April 2012

Short Term (2 mos. 1 yr)
September 2013

• Short Term International Assignment

• New Hire Global Transfer Policy (Tier 2 - Below
  M2)
• Employee Relocations
• New Hire Global Transfer Policy (Tier 1 - M2 and
  above)
• Local Plus Transfers to Australia
• New Hire Global Transfer Policy - Australia (Tier
  1 - M2 and above)
• New Hire Global Transfer Policy - Australia (Tier
  2 - Below M2)

Permanent Transfer (One way move)

April 2014

• Domestic New Hire Transfer Policy (Tier 1)
• Domestic New Hire Transfer Policy (Tier 2)
• Relocation Program - New Grads
• Group Move Transfer Policy
• Domestic Transfer Policy - Australia
• Temporary Student Transfer Policy

Commuter Ongoing
Future

• Commuting Assignment

Rotator (Up to 3 yrs)
April 2013

• Rotational Terms Conditions

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New Ways of Working

• Global Processes
• Assignment initiations
• Assignment approvals
• Assignment extensions
• Exceptions management
• Team Communications
• Sharepoint
• Discussion board
• Monthly calls
• 11 calls amongst Specialists
• GM Specialists attend HRBP Business meetings
• Tools Templates
• Exception request template exception log
• Business case form
• LTA cost projection tool (PWC)
• Assignment Letter Templates
• Flag sheets of allowances site specifics (by
  country)

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Resources available to support the new policy and
programs
Employee Handbook Long Term Assignments
HR Guidebook Long Term Assignments
Global Mobility Services Representative
Global Mobility Selection Guide
Assignment Cost Estimate
Business Case Tool
Assignment Letter
Global Mobility Specialist
Relocation Services Vendor
Estimate of Assignment Allowances
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Challenges
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Transformation Challenges

• Change in business strategy with increased focus
  on regional autonomy
• Business appetite and understanding of
  mobilitys role (value add)
• Role clarity GM vs. HR and Host vs. Home
• Policy implementation took a lot longer than
  anticipated
• Systems and data
• Exception management
• JVCos (new operating model)
• High amount of organizational change and impact
  on home sponsorship
• Country exits

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Overlap of responsibilities leads to confusion
for both the assignee and Global Mobility
Pre-Planning Pre-Assignment On-Assignment Re-Assignment

Feed mobility data into talent review cycle
Facilitate mobility planning discussions with
business leader
Confirm employees interest in relocation
Coordinate with business on next role and
succession plans
Complete assignment business case and advise
Business Leader and HRBP of applicable assignment
types
Manage escalated exception requests
Finalize assignee package with employee
Manage redeployment / reassignment activities six
months prior to end date
Transfer knowledge of assignee profiles to new
host Global Mobility Regional Specialist for
assignees that are redeploying
Develop assignment package and socialize with
approving authority
Discuss initial questions / concerns with employee
Prepare program metric and strategic reporting
analysis
Maintain employee data record management
Complete internal accounting andcost allocations
Contact employee and conduct pre-departure
orientation
Initiate end of assignment / repatriation
activities
Conduct assignee on-boarding
Initiate relocation vendor services
Support visa application process
Direct employee support Indirect employee support
Complete annual compliance returns
Conduct pre-assignment tax briefing
Coordinate relocation services
Conduct post-assignment tax briefing

• Key Assumptions
• Employee support is provided by the Host Global
  Mobility Regional Specialist

Collection of assignment costs
Generate assignment balance sheets
Administer expense reimbursements
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Keep Moving Forward
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The not so distant future vision for Talisman GM
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Relocation Services Management Global Approach
(desired future state)
Home Location
Host Location
Aberdeen Algeria Brisbane Bogota Calgary Erbil F
reetown (SL) Ghana Ho Chi Minh City Horseheads Hou
ston Jakarta Kuala Lumpur Lima Luxembourg PNG
Pittsburgh Singapore Stavanger Sydney Warsaw
Americas
Aberdeen Bogota Brisbane
Calgary Ho Chi Minh City Houston Jakarta Kuala
Lumpur Peru PNG Pittsburgh Stavanger
Asia Pacific

• Two ways to manage
• Different vendors regionally managed
• One global vendor regionally located with
  global oversight

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Changing the Way we Work

• New HRMS system implementation helps to bring us
  full circle
• Still considering a full expat management
  software to eliminate the manual tracking we
  still need to do

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Questions?